Ola Electric Mobility Ltd appears to be finding firmer footing in its core vehicle business, delivering a first-ever quarterly profit in the auto segment while narrowing its overall losses. The company posted a consolidated net loss of Rs 418 crore for Q2 FY26, an improvement from Rs 495 crore a year earlier.
Revenue from operations contracted sharply, sliding 43% year-on-year to Rs 690 crore from Rs 1,214 crore in the same quarter last year, reflecting softer sales across the period.
Improved Margins and Cost Efficiency
Ola’s operating EBITDA loss narrowed to Rs 203 crore from Rs 379 crore a year ago, indicating tighter cost control. Within the auto business, EBITDA swung into positive territory at 0.3%, up from -5.3% in the prior quarter. Gross margins rose sequentially by 510 basis points to 30.7%, pointing to gains in production efficiency despite reduced top-line revenue.
Operating spend in the auto division fell to Rs 258 crore from Rs 308 crore in Q1, and consolidated operating expenses eased to Rs 416 crore from Rs 451 crore. Management expects auto operating costs to decline further to about Rs 225 crore by Q1 FY27.
Strong Sales of Roadster Model
The premium Roadster model drove a notable share of demand, with daily dispatches jumping to as many as 450 units during the festive window — roughly quadruple Q1 volumes. The Roadster now makes up about 15% of Ola’s total sales mix.
Expansion in Manufacturing and Battery Business
Ola has brought 2.5 GWh of cell capacity online at its Gigafactory — India’s first operational gigawatt-scale cell plant — and is targeting 5.9 GWh by March 2026, with plans to scale to 20 GWh in the second half of FY27.
The company also introduced Ola Shakti, a home battery storage system built on its 4680 Bharat Cells. Management projects the product to contribute about Rs 100 crore in Q4 FY26 and between Rs 1,000–1,200 crore in FY27, with estimated gross margins in the 40–50% range.
Outlook for the Year
For H2 FY26, Ola expects to deliver roughly 100,000 units and is targeting full-year consolidated revenue of Rs 3,000–3,200 crore. The company forecasts auto gross margins near 40% and segment EBITDA around 5% by Q4, with the cell business beginning to add to revenue.
After the Q2 update, Ola Electric’s shares edged down, trading at Rs 49.4 on the NSE — about 1.3% below the prior close.
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